Auto Mileage Standards’ Costs Offset by Savings, NHTSA Says

A proposed U.S. rule requiring automakers to double average fuel economy of vehicles to 54.5 miles per gallon by 2025 could cost $157 billion, though the costs would be offset by fuel savings, two federal agencies said in a draft, Bloomberg reported.

The standard would add about $2,000 per vehicle sold by 2025, the National Highway Traffic Safety Administration and Environmental Protection Agency said in a proposed rule released Wednesday.

But the benefits — $419 billion to $515 billion in fuel savings — would offset the costs, Bloomberg said, citing NHTSA.

The proposed rule requires annual fuel-economy increases of 5% for cars, while light trucks like pickups and sport-utility vehicles can raise fuel economy at 3.5% for the first five years, and thereafter unless regulators decide differently, Bloomberg reported.

The Obama administration issued heavy-duty truck emissions standards in August that were generally well-received by the trucking industry.